Severe storms, including tornadoes and flooding, have resulted in deaths, injuries and property damage throughout the Midwestern states of Iowa, Nebraska, Kansas and Missouri. The FDIC is encouraging banks to work constructively with borrowers who, because of the severe storms, are experiencing difficulties beyond their control. The FDIC has prepared the attached guidelines, which state that extending repayment terms, restructuring existing loans or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the community and serve the long-term interests of the lending institution. The guidelines also address other types of regulatory relief.

For guidance on these and related matters, please contact Assistant Regional Directors Pamela J. Farwig or John R. Jilovec in the Kansas City Regional Office at (816) 234-8000.

For your reference, FDIC financial institution letters may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2004/index.html.

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Distribution: FDIC-Supervised Banks (Commercial and Savings) in the Kansas City Region

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).